1. NAME OF COURSE  / MODULE CREDIT MANAGEMENT
2. COURSE CODE MBB4023
3. NAME(S) OF ACADEMIC STAFF  
4. RATIONALE FOR THE INCLUSION OF THE COURSE/MODULE IN THE PROGRAMME This is an additional finance course for the programme. The course is exposing students with principles and techniques in credit management for financial institutions.
5. SEMESTER & YEAR OFFERED Semester 6 / Year 3
6. TOTAL STUDENT LEARNING TIME (SLT) Face to face:

L T P O
28 28 5

L=lecture ; T=Tutorial; O=Others (Exam)

Total Guided and Independent Learning:

123
7. CREDIT VALUE 123/40= 3.075 (3 credit); 2+2
8. PREREQUISITE (IF ANY) MFA2013 Principles of Financial Management
9. OBJECTIVES 1. To familiarize students with the importance of credit management and types of lending offered by Malaysia financial institutions

2. To highlight students with practical tools in analyzing financial statements.

3. To furnish students with minimum professional standard of credit personnel in the banking and finance industry.

4. To equip students with ample knowledge on credit evaluation and process in financial institutions

10. LEARNING OUTCOMES At the end of the course, learners will be able to:

1. Discuss the importance of credit management in Malaysian financial system (LO3-CTPS3)

2. Use practical tools in analyzing financial statements. (LO2- P2)

3. Analyze types of Islamic Financing (LO3-CTPS3)

4. Formulate the best technique to evaluate credit application in Islamic financial institutions. (LO9-LS2)

11. TRANSFERABLE SKILLS Student should be able to manage the financing function in Islamic financial institutions through a process of lectures, tutorial and group discussion.
12. TEACHING-LEARNING AND ASSESSMENT STRATEGY Teaching-learning strategy:

  • The course will be taught through a combination of formal lectures, exercise, group work, PBL, short cases, forum with credit officer in a bank, field trip to the bank or AKPK in terms of informal activities and using original manual from the banking institution as the textbooks in the class. Collaborative teamwork will be fosters throughout the course. The use of examination and internal reporting assessment will assess the student’s ability to apply theoretical concept in context.

Assessment strategy:

  • Formative
  • Summative
13. SYNOPSIS The subject aims to provide an analysis of the various lending activities of Malaysian financial institutions and the legal principles related to these activities. Emphasis is placed on the assessment of credit proposals and the management of credit.  The topics covered including credit policy, retail financing, commercial financing, corporate financing and corporate services, valuation of assets, structuring financings, and problem financings and recovery.
14. MODE OF DELIVERY Lectures and tutorial (SCL)
15. ASSESSMENT METHODS AND TYPES
Component %
Continuous Assessment 50
Final examination 50
Total 100
16. CONTENT OUTLINE OF THE COURSE/MODULE AND SLT PER TOPIC
TOPIC Lecture Tutorial Test/Quiz/Exam Assignment Problem Based Learning Self-study Total
Fundamental of Shariah 2 2 3 7
Islamic Financing Facilities 4 4 6 14
Islamic Financing Documentation 2 2 3 7
Islamic Trade Financing 4 4 6 14
Financial Statement Analysis 4 4 6 14
Credit Evaluation Technique 4 4 6 14
Restructuring and Rescheduling of  Financial Facilities 2 2 3 7
Assessment and Management of Risk 4 4 6 14
Management of Financing Portfolio 2 2 3 7
Continuous Test/Quiz/Assessment 2 10 10 22
FINAL 3 3
TOTAL 28 28 5 10 10 42 123
17. REFERENCES Main references:

1. Islamic Banking and Finance Institure Malaysia (2006) Certified Credit Professional –Islamic (CCP-i)

2. Ahmad Sanusi Hussin (2010) FSTEP Islamic Banking Handbook, Institut Bank-Bank Malaysia (IBBM)

3. Mohd Khairi Saat (2011) Islamic Banking Practice, ‘From the Practitioner Perspective’ Islamic Banking and Finance Institute Malaysia

Additional Reading:

1. Loghan, L., Tan, J., Tang, K.O., Tee, M.B., and Naresh, N., 2008, Consumer Credit (V2.4), Study Manual Certified Credit Professional, Institut Bank-Bank Malaysia, Kuala Lumpur (CCP2)

2. Tan, J., Jordan, P.B., Noripah, K., and Tan, K.O., 2007, Business Credit, Study Manual Certified Credit Professional, Institut Bank-Bank Malaysia, Kuala Lumpur (CCP3)

3. Ioannis Akkizidis, Sunil Kumar Khandelwal (2008) Financial Risk Management for Islamic Banking and Finance. Palgrave Macmillan; 1st edition

 

Mapping of the course/module to the Programme Learning Outcomes

TOPIC

Contact hours (week)

Lesson Learning Outcome

(Students are able to…)

CLO KI Teaching & Learning Activities Assessment Tasks
PART A: ISLAMIC FINANCIAL SYSTEM AND PRINCIPLE OF CONSUMER AND BUSINESS FINANCING
Fundamental Of Shariah Financing

  • Islam and Shariah
  • Credit in Islamic perspective
  • Types of Borrowers
  • Basic Credit Factors
2 1. Describe the important of credit in economy.

2. Explain the concept of credit in Islam

3. Explain the differences of borrowing needs of each types of borrowers in Islam

LO2

LO2

LO6

o Lecture

o Short case

·  Discussion on short case
Islamic Financing Facilities

  • Application of Muamalat Contract
  • Asset Based Financing
  • Equity Based Financing
  • Supporting Contract
4 1. Apply the fundamental of muamalat contract

2. Describe the modus operandi and checklist of each asset, equity and supporting contract

3. Understand and able to calculate manually the different types of financing

LO2 o Lecture

o Tutorial activities – exercises

 

· Feedback on tutorial activities
Islamic Financing Documentation

  • Types and forms of security
  • Financing Documentation
  • Understanding the Theory of Aqd, Mal and Milkiyyah
2 1. Distinguish between types and forms of security

2. Discuss the rationale of credit support

3. Differentiate the theory according to contract, property and ownership

LO3

LO3

LO3

CTPS3 o Lecture

o Tutorial activities – exercises

 

·  Feedback on tutorial activities
Islamic Trade Financing

  • Factor of Islamic International trade
  • Products associated with trade
  • Methods of calculation

 

4 1. Explain the considering factors in Islamic Trading

2. Understanding several product of trade

3. Understand and able to calculate manually the different types of product financing

LO3

LO3

CTPS3 o Lecture

o Tutorial activities – exercises

·  Feedback on tutorial activities
PART B: ANALYSIS
Financial Statement and Analysis

  • Analyze using ratio
  • Cost of Fund
  • Credit evaluation
4 1. Apply practical tools in analyzing financial statements

2. Describe and calculate the concept of cost of funds

3. Identify the correct product needs

LO3

LO3

LO9

CTPS3

CTPS3

LS2

o Lecture

o Tutorial activities – exercises / case study

· Feedback on tutorial activities
Credit Evaluation Technique

  • Types and forms of security
  • Financing documentation
4 1. Distinguish between types and forms of security for consumer credit

2. Prepare efficient, accurate and professional financing document

3. Analyze documents using 5C’s, Campari and Z model

LO3

LO9

CTPS3

LS2

o Lecture

o Tutorial activities – exercises

o Field trip

·  Feedback on tutorial activities
Disbursement, Monitoring, Collection and Recovery

  • Pre and post-disbursement
  • Monitoring financing
  • Collection and recovery process
2 1. Verify the pre and post-disbursement documentation

2. Analyze activity report in monitoring financing

3. React effectively for financing collection and recovery process

LO2

LO3

LO9

 

CTPS3

LS2

o Lecture

o Tutorial activities – exercises

 

·  Feedback on tutorial activities
PART C: MANAGING PORTFOLIO
Restructuring and Rescheduling of Islamic Financial Facilities

  • Non-Performing Financing
  • Restructure and reschedule
  • Obligation to Repay Debt
2 1. Differences between reschedule and restructure

2. The importance of monitoring

 

LO2

LO9

 

LS2

o Lecture

o Tutorial activities – Problem Based Learning

· Feedback on tutorial activities

· Submission of assignment

Assessment and Managing of Risk

  • Quantitative and qualitative aspects of financial analysis
  • Types of Credit risk
4 1. Analyse risk using qualitative technique

2. Use several methods to mitigate credit risk

3. Construct financing structure, to suit consumer or business needs

LO3

LO3

CTPS3

CTPS3

o Lecture

o Tutorial activities – Problem Based Learning

·  Feedback on tutorial activities
Managing Financing Portfolio

  • SWOT analysis as credit tool
  • Monitoring the uilitisation of facilities
  • Monitoring credit review
  • Sources of available information
  • Symptoms of financial distress
  • Causes of business failures
2 1. Use SWOT analysis to evaluate businesses

2. Describe the importance of financing monitoring.

3. Identify when and why it is necessary to conduct regular review

4. Identify the types of financial distress, business failure and warning signs

LO3 CTPS3 o Lecture

o Tutorial activities – Problem based Learning

·  Feedback on tutorial activities